may be difficult to sell because it is
next to a sewerage treatment pond.
An otherwise attractive and affordable
apartment may be impossible to sell
because there was a suicide on the
same floor.
Some liquidity factors may be outside
your control but with a bit of planning,
you can make it easier to liquidate.
1. Remember that property is
not very liquid
will have a tough time finding buyers.
More often than not, spending a little
money to make your property look
attractive increases the chances of
selling it.
In conclusion, properties are great
investment vehicles but it is very
important to know how to manage its
liquidity factor. The ability to manage
this is the difference between a sound
investment and a risky investment.
NEVER plan to rely on your capital gain
for emergencies. You need to have
very liquid assets like cash, stocks, or
insurance as contingency reserves, not
property.
2. Plan your exit
When you buy a property, plan your
exit strategy.
You may want to sell it after 10 years
to upgrade or perhaps sell it to pay
your son’s college tuition. Either way,
knowing when you want to exit is
important to realizing gain.
3. Look at demand factors
Buy properties with strong potential
for demand. You should consider
infrastructure,
connectivity,
affordability, and layout of the property.
4. Emphasize perceived
value over market value
Your property may have a market value
of RM500,000 but if it is perceived to be
worth less because it is rundown, you
Ikhram is a certified content
marketer, public speaker, and author
of The Ultimate Guide to Buying
Property. Ikhram’s specialization is
in property markets and personal
growth.
The Asian Property Review, in
2017, called him “one of the most
experienced and successful AirBnB
hosts in Malaysia”. He shares
insights about the property market
on his blog at www.LivingSpace.
com.my.
Ikhram holds a Bachelor’s Degree
from Monash University with double
majors in Strategic Management
and Electronic Commerce.
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